The A's took another incremental step in their quest for a stadium in San Jose on Tuesday when the San Jose City Council voted 10-1 to approve extending a land-purchase option to the team.

"It's a small step, but it's still a significant step," San Jose Mayor Chuck Reed said by phone. "It feels more concrete. Now we're talking about a real-estate deal. I think we're getting closer."

San Jose is granting the A's a two-year option to buy about 5 acres of land downtown, near HP Pavilion and the Diridon Station. The option will cost the A's $50,000, and there is a $25,000 option for a third year. During that period, the team may purchase the land for $6.98 million - an outcome presumably dependent on Major League Baseball approving the move.

A's owner Lew Wolff said in an e-mail to The Chronicle that he is "pleased with the vote" by the City Council.

There are no indications from MLB that the A's stadium issue is on the agenda for next week's owners' meetings in Milwaukee; the next owners' meetings after that will be in January. MLB's blue-ribbon panel studying a new A's ballpark has operated for nearly three years with no public recommendation.

Even if the A's get the OK to move, any final land sale and ballpark must be approved by San Jose voters, a stipulation affirmed by City Council vote Tuesday. No public funds are to be used to build or maintain the facility or to reimburse the team for any building-related expenses.

Santa Clara County is considered to be Giants' territory by MLB, but major-league owners could vote to overturn the territorial rights.

The A's are likely to pay the $50,000 for the option agreement within the next few days. Should the team decide not to purchase the land, the city will keep the $50,000.